Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On September 14, 2009, the Compensation Committee of the Board of Directors of Multimedia Games, Inc. ("MGAM") approved a compensation program (the "Partner Group Equity Compensation Plan") for the group of senior MGAM executives referred to by MGAM as the Multimedia Games Partner Group (the "Partner Group"). The Partner Group is comprised of Anthony Sanfilippo, President and Chief Executive Officer, Adam Chibib, Senior Vice President and Chief Financial Officer, Patrick Ramsey, Senior Vice President and Chief Operating Officer, Mick Roemer, Senior Vice President of Sales, Virginia Shanks, Senior Vice President and Chief Marketing Officer, Uri Clinton, Senior Vice President, General Counsel and Corporate Secretary, and Joaquin Aviles, Vice President - Technology.

The program provides for an annual grant of an incentive stock option to purchase shares of MGAM's common stock to each member of the Partner Group effective as of September 30, the last day of MGAM's fiscal year. The amount and terms of each award will be based on the Chief Executive Officer's recommendation but determined by, and within the discretion of, the Board of Directors or its Compensation Committee. Annual awards will be granted from a pool of options that is equal to twenty percent (20%) of all initial awards granted to each member of the Partner Group upon joining MGAM.

The Compensation Committee believes the Partner Group Equity Compensation Plan serves several important compensation objectives. It enhances MGAM's ability to attract and retain experienced executive talent in the gaming and technology industry. The program also furthers MGAM's compensation objective of strongly aligning executive focus with the interests of MGAM's shareholders in increased enterprise value.

Options awarded under the Partner Group Equity Compensation Plan will have a seven (7) year term and will vest as to twenty-five percent (25%) of the award upon the first anniversary of grant, with the remainder vesting in equal quarterly installments for the succeeding three years. Awards will be made under existing MGAM equity compensation plans, and will be subject to shareholder approval of any required increases in shares reserved under such plans.

At its meeting on September 14, 2009, the Compensation Committee also determined initial awards to be granted under the Partner Group Equity Compensation Plan, aggregating 573,333 options, effective September 30, 2009. Initial awards under the program were adjusted and pro-rated for each member of the Partner Group based on the number of months that have elapsed since the individual partner's initial date of grant.

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